Liberum Capital has reaffirmed its 'buy' recommendation and 1,200p price target on shares in Ergomed PLC (AIM:ERGO, ETR:2EM), a contractor to life sciences companies.
In a 13-page research note, the boutique investment bank's analysts stated: "We remain of the view that Ergomed is a quality company and view any weakness in the share price as a buying opportunity."
Their recent analysis of the company's preliminary results indicates that Ergomed is not immune to the economic downturn, with organic revenue growth rates falling short of expectations.
However, the analysts noted that some variability is typical, and the firm's order book analysis suggests that Ergomed stands a good chance of meeting market expectations. This does mean that the forecast risk for 2023 results is higher than usual, investors were told.
Ergomed's revenue dynamics require a strong start to the year, and initial signs are promising. The Liberum analysts expect to have a clearer picture of the FY23 outcome by the company's AGM in June.
Ergomed shares were changing hands for 1,050p, up 1.15% on Tuesday.